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Why was my Renaissance Zone Credit adjusted?

If the Renaissance Zone Credit was adjusted on your Michigan Business Tax (MBT) return, check if the following information was included with your return:

  • The following forms are required to be filed to claim the Renaissance Zone Credit: Form 4567, Form 4568, and Form 4595. If any of these forms are missing, the credit will be denied. A complete amended return, including all forms, schedules and attachments, must be filed in order to correct the original return.
  • If your Renaissance Zone Credit was adjusted, substantiation for the credit must be provided. Documentation must include:
    • The property’s address with parcel number
    • Proof that the parcel is located within a qualified Renaissance Zone
    • The date the qualified Renaissance Zone was designated
    • Verification that the business was not delinquent in filing or paying any state, local, or property taxes as of the December 31st prior to the tax year for which the credit is being claimed. A letter from the local governmental unit on its letterhead, containing all of the required information discussed above, will generally satisfy requirements. 
  • During the last three years of a Renaissance Zone’s designation, the credit must be reduced. See Form 4595 for the Reduced Credit Table.
  • If the entity located and conducting business activity in the Renaissance Zone is a member of a Unitary Business Group (UBG), the Renaissance Zone Credit must be calculated at the member entity level. Calculation of the Renaissance Zone Credit should be done before elimination of intercompany transactions.
  • The method of calculating the credit is different for businesses first locating and conducting business activity within the Renaissance Zone before December 31, 2002, than for those businesses first locating and conducting business activity within the Renaissance Zone after December 31, 2002. For tax years beginning in 2010 or later, the different method of calculation applies to businesses first locating and conducting business within the Renaissance Zone after December 1, 2002. Please see Form 4595 and its instructions for additional assistance.